2017 SCMR 1696 Judgment Time Essence of the Contract: S. 55—Transfer of Property Act (IV of 1882), S. 54—Agreement to sell immoveable property—Time essence of the contract —Principles—In view of the commercial nature of the property business and a widespread trend of rapid increase in prices of immovable properties, a seller could not be left at the mercy of the buyer to bind him in an agreement to sell and then delay completion of the contract for as long as he may wish hiding behind an archaic legal principle that in contract s involving immovable properties, time was generally not of the essence —Said rule was settled many centuries ago when prices of real estate remained constant and stagnant for years on end, however said rule had to be revisited and revised keeping in view the changed circumstances and the ground realties of the real estate market—
In this day and age, on account of rapid increase in population demand for real estate had increased—On account of increasing demand and limited supply, property prices rose rapidly, at times in a matter of months, therefore, the principle that in real estate transactions, time was not of the essence could not indiscriminately be applied—Said principle must be interpreted and applied specifically considering the facts and circumstances of each case to balance equities, keeping the standards of reasonability in mind and ensuring that injustice was not done to either side.